Hello Traders,
NIFTY50 finished a 5-move-pattern at 10266.95 (Sept. 11) and pull back to 10344.95 and made a wave b/2 high still here. The pullback was much shallower than expected (10405 was my target) and very volatil and declined strong to new lows at 10216.95 this morning. The shape of the countertrend pattern look like a triangle, and if this is one it only can be a wave b!
That means by following the idea of a b-wave pattern:
it is a ZigZag-pattern we`re monitoruing;
the length of wave a and c in a ZigZag are often equal in terms of price;
the price target for a wave c lees between 10188.5(0.70 RT) at minimum and 10121,45 ((wave a=c) and at 9759.83 (2.618 RT of wave a);
if wave c extend more than the lenght of 1.618 of wave a, I will switch the count from correctiv to impulsiv.
As long as NIFTY50 is trading below the wave b/2 high at 10344.95 I favor a a-b-c pattern within a wave 2, which is the most often pattern for a wave 2 correction.
Notice that NIFTY50 today closed the open gap from 10207.7 at Oct. 24.
The much broader Indexes NIFTY500 and SENSEX create today again „bearish Engulfing“ on a daily basis. NIFTY Bank was much stronger the last week and did not make a new low since Oct. 07 @ 22695.75 as NIFTY 200/500 and SENSEX did. This means to my view, that NIFTY Bank will show some stronger weakness as SENSEX and N200 will do, or the correction is close to an end and the major Indexes will rise in unison to new highs.
Todays a/d-Ratio was weak at 0.275.
Have a great week
ruebennase
NIFTY50 finished a 5-move-pattern at 10266.95 (Sept. 11) and pull back to 10344.95 and made a wave b/2 high still here. The pullback was much shallower than expected (10405 was my target) and very volatil and declined strong to new lows at 10216.95 this morning. The shape of the countertrend pattern look like a triangle, and if this is one it only can be a wave b!
That means by following the idea of a b-wave pattern:
it is a ZigZag-pattern we`re monitoruing;
the length of wave a and c in a ZigZag are often equal in terms of price;
the price target for a wave c lees between 10188.5(0.70 RT) at minimum and 10121,45 ((wave a=c) and at 9759.83 (2.618 RT of wave a);
if wave c extend more than the lenght of 1.618 of wave a, I will switch the count from correctiv to impulsiv.
As long as NIFTY50 is trading below the wave b/2 high at 10344.95 I favor a a-b-c pattern within a wave 2, which is the most often pattern for a wave 2 correction.
Notice that NIFTY50 today closed the open gap from 10207.7 at Oct. 24.
The much broader Indexes NIFTY500 and SENSEX create today again „bearish Engulfing“ on a daily basis. NIFTY Bank was much stronger the last week and did not make a new low since Oct. 07 @ 22695.75 as NIFTY 200/500 and SENSEX did. This means to my view, that NIFTY Bank will show some stronger weakness as SENSEX and N200 will do, or the correction is close to an end and the major Indexes will rise in unison to new highs.
Todays a/d-Ratio was weak at 0.275.
Have a great week
ruebennase